Karachi, Interloop Limited (ILP) is set to discuss its financial results for the third quarter of the fiscal year 2024 on April 30. The company is expected to post earnings per share of Rs0.93 for 3QFY24, a significant decrease from Rs6.84 reported in the same period last year, primarily due to the absence of exchange gains that boosted the previous year's figures.

According to JS Global, the year-over-year decline in earnings mainly reflects the lack of windfall exchange gains this year, with an expected net exchange loss of Rs0.34 per share due to the quarter-over-quarter appreciation of the PKR against the US dollar. Despite a projected 35% growth in revenue, earnings per share are still expected to fall by 58% year-over-year, primarily due to shrinking margins and an increase in non-concessionary bank borrowings. The hosiery segment continues to be the primary revenue driver, contributing approximately 80% to the company's top-line.

The briefing highlighted several challenges and outlooks for ILP. Gross margins are anticipated to decline by 100 basis points to 27% quarter-over-quarter, impacted by various factors including lower export prices, currency appreciation, new apparel commissioning costs, and increased fuel expenses. Despite these short-term challenges, JS Research reiterates a 'Buy' rating for ILP with a target price of Rs100, citing a long-term positive growth outlook driven by expected recovery in export volumes and prices, PKR depreciation normalization, and reduced reliance on external financing.